The impact of product market strategy-organizational culture fit on business performance |
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Authors: | Larry Yarbrough Neil A Morgan Douglas W Vorhies |
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Institution: | (1) Supply Chain Management Research Center, University of Arkansas, Fayetteville, AR 72701, USA;(2) Kelley School of Business, Indiana University, 1309 E. Tenth Street, Bloomington, IN 47405, USA;(3) School of Business Administration, University of Mississippi, Holman 327, University, MS 38677, USA |
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Abstract: | Drawing on the organization theory literature concerning configuration theory, competing values theory, and fit assessment
methodologies, we examine the existence and performance impact of product market strategy–organization culture fit. Specifically,
we assess the relationship among three important elements of a firm’s product market strategy and the four cultural orientations
that comprise the competing values theory of organizational culture using primary and secondary data from the US trucking
industry. Using two different conceptualizations and operationalizations of fit, our results provide the first empirical support
for the existence of interrelationships among product market strategy decisions and organizational culture orientations consistent
with configuration theory conceptualizations of product market strategy–organizational culture fit. We also find support for
theorized but previously untested relationships between product market strategy–organizational culture fit and firms’ customer
satisfaction and cash-flow return on assets (CFROA) performance. Since product market strategy is heavily reliant on the input
of marketers, and organizational culture has long been recognized as having an important impact on marketing-related decision
making, these findings have important implications for marketing strategy research and practice. |
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